Frontrunning: August 18

  • Fed Dissenters Say Pledge Gives Appearance of Targeting Stocks (Bloomberg)
  • U.S. Inquiry Eyes S.&P. Ratings of Mortgages (NYT)
  • 6 dead in string of attacks in southern Israel (CNN)
  • ECB’s Nowotny Says Italy Not Greece, Too Early for Euro Bonds (Bloomberg)
  • France, Germany Push for Sanctions (WSJ)
  • Breaking Europe’s cycle of enfeeblement (FT)
  • Biden tells China's Xi that cooperation key for global stability (Reuters)
  • Hong Kong Exchange in Venture Talks With Shanghai, Shenzhen (Bloomberg)
  • Fed Eyes European Banks (WSJ)
  • Beijing, Shanghai Home Prices Stop Rising (Bloomberg)

European economic update:

  • Sweden Industry Capacity for Q2 88.8%Previous 88.9%
  • UK Retail Sales Ex Auto Fuel for July 0.2% m/m -0.2% y/y weaker than expectedConsensus 0.4% m/m 0.1% y/y Previous 1.0% m/m 0.2% y/y
  • UK Retail Sales w/Auto Fuel for July 0.2% m/m 0.0% y/y weaker than expectedConsensus 0.3% m/m 0.3% y/y Previous 0.8% m/m 0.4% y/y

Global highlights courtesy of Egan-Jones:

  • Asia stocks fall on high Yen, US rates concern.
  • China’s home prices fell in July from the previous month in 14 of 70 cities monitored by the govt.
  • Gold settles at record just shy of $1,800; Venezuela announces gold industry nationalization.
  • Japanese exports fall more than expected 3.3% - falls for 5th straight month.
  • Michigan July unemployment rate hits 10.9%; jobless top 500,000 for first time since Jan.
  • Oil hovers below $87 in Asia amid fears a weakening US economy may hit demand.
  • AFC Enterprises reports EPS in-line, misses on revs; guides FY11 EPS below consensus.
  • Asahi Group to buy New Zealand's Independent Liquor in a deal roughly totaling $1.3B.
  • Australian brewer Foster's again rejects $10 billion takeover bid from London-based SABMiller.
  • BofA said to consider foreclosure deal that leaves securities probes open.
  • CACI Intl beats by $0.27, reports revs in-line; guides FY12 EPS above consensus.
  • Carlsberg issued a full-year profit warning after demand in Russia fell due to increased duties.
  • China Mobile's H1 net rises 6.3% to $9.59B, boosted by growth in its wireless data business.
  • Cree acquires Ruud Lighting to accelerate the LED lighting revolution for ~$525M.
  • Deere Q3 profit up 15% at $712.3M; improves outlook, expects 2011 profit at $2.652.7B.
  • Hot Topic swings to Q2 loss of $6.2M amid restructuring charges. Revs flat at $150.9M.
  • InterDigital Inc. shares surge on report saying Qualcomm, Nokia considering bid.
  • Justice Department clears sale of A. O. Smith's electric motor business to Regal Beloit.
  • Kodak kicks off auction process for patents.
  • Limited beats by $0.02, posts Q2 EPS of $0.48. Revs rose 9.6% to $2.46B.
  • Lenovo says quarterly profit nearly doubles at $108M on strong sales in BRIC's.
  • Marsh McLennan increases buyback from $500M to $1B.
  • NetEase.com Inc.'s Q2 net rises 60% to $119.5M as revs rose 30.7% to $268.2M.
  • PetSmart's profit up more than 26% in Q2 to $61.2M; raises outlook for full year.
  • Staples Inc. Q2 profit rose a better-than-expected 36%, helped by stronger sales.
  • Target's Q2 profit rises 3.7% to $704M on 4.6% jump in sales to $16.24B.
  • Tech Data Corp reports increase in net sales of 18%.

Economic Calendar: Initial & Continuing Claims, CPI-Jul, Existing Home Sales, Philadelphia Fed
Earnings Calendar: ADSK, ARO, BKE, BONT, BRCD, CRM, CRMT, DLTR, FL, GPS, HPQ, INTU, MRVL, PERY, ROST, SJM, SSI, WTSLA.